Frequently asked questions about online forex

Here you get answers on some of the most frequently asked questions to OnlineForex.net.

You can also ask questions if you want to know anything related to forex trading or currencies in general.

Also check out the forex glossary if you want to have definitions of important words.

What is backtesting?
Backtesting is a process which allows you to test the success of your forex trading system with historic market data.

What is spread?
The spread is the difference between the buy- and the sell price, mostly denoted in number of pips.

What are pips?
PIP stands for “Percentage in Point”. A pip in currency trading is 1/100 of 1%. When you trade forex online, the price is typically denoted with 4 decimals.

What is an Online Forex Broker?
A >>forex broker is the English word for currency broker. Forex brokers can be equated with banks helping or allowing companies and individuals, foreign exchange.

When is the currency market open?
It is possible to buy foreign exchange from Sunday night (22:00 GMT +1) to Friday night (22:00 GMT +1).

What is back testing?
Back testing is a process where you test your forex trading system by using past market data.

What is Forex Scalping?
Scalping is a way to trade currencies to profit from a currency pars high volatility over a short period of time. Currency Traders who use Scalping often exploit high leverage and invest in less than 10 pips within a couple of minutes.

Using Forex Scalping strategy which is often regarded as a dangerous method of professional currency traders.

What is a margin call?
A margin call happens when a foreign currency account no longer has enough money to keep open positions available. This often happens when a newbie has too many losses in a row and then have too many open positions at the same time. Make sure to never to leverage more than 20 times the money and you’re relatively safe.

What is the ZEW Indicator of Economic Sentiment?
The ZEW indicator of Economic Sentiment is a very important Indicator for the Economy in Germany that is updated on a monthly basis.